Iran In Country Brief on their Economy - Essay Example

Extract of sample Iran In Country Brief on their Economy

The Iran spending budget is $482 billion (Polk 2011, p. 20). This is direct tied to oil prices per barrel. Later in the presentation, Iran’s strong reliance on oil is directly related to their international relations policy.
In addition to petroleum another prominent Western perspective on Iran is its strong embrace of religious principles. In many ways these perspectives, in economic terms, have a degree of truth. In this way it’s estimated that as much as 30% of government spending goes towards religious organizations (Polk 2011, p. 20).
The exact government spending breakdown is recognized as follows: In terms of specific government spending policies, the reported breakdown of Iranian spending is 59% on social policies, 17% on economic matters, 15% on national defense, and 3% on agriculture (Polk 2011, p. 19). Within this spending contains the 30% that goes towards religious groups
There are a number of historical considerations that must be examined when considering the Iranian economy. The picture featured on the slide you see is Ayatollah Khomeini; this is the individual that took over with the 1978 Revolution. Prior to 1979 Iran’s economic expansion occurred at a robust pace. With the 1978 Iranian Revolution, however, there was a stark decline in economic growth. Following the Revolution the government increasingly focused on economic independence and an increased quality of life for Iranian inhabitants (Polk 2011, p. 32).
Still, while Iran’s oppositional stance to the United States is commonly attributed to its economic shortcomings, it’s also recognized that the country has faced considerable other challenges. Between 1980 and 2000 the Iranian economy nearly doubled. This increase in population resulted in food-shortages that greatly impacted the economic structure (Polk 2011, p. 24).
Another major economic setback occurred in 1980 with the Iran-Iraq war. Indeed, the picture featured above is of a tank with oil flames
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Summary

While Western perspectives generally view Iran as a marginal, yet problematic nation, in actuality the country is the seventeenth largest in purchasing power and 26th by market…

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US Policy Towards Iran
The issue of U.S sanctions imposed on Iran has existed for the last 30 years. Since 1979, the two countries have had minimal economic cooperation. The U.S government has been trying to influence the Iranian economy by altering its interaction with the international community.

The country was seen to swiftly adopt various measures and policies that helped it nationalize its oil industry. However, Iran had ignored to take a close objective look at the possible consequences it stood to face as a result of nationalizing its oil industry.

Economic sanction is a penalty charged by one country on another as a form of trade regulative measure restricting flow of financial transactions between the national participants of the two countries. When the economic stability and prosperity depends largely on the global positioning of an economy, international economic sanctions are impactful.

However, in 1953, a coup occurred against Iran’s democratically elected prime minister supported by both the United States and the United Kingdom. In 1979, there was also a revolution against Iran’s hereditary ruler (the Shah) and the US was purported to be involved.

New large scale emerging markets such as China and India provide a strong internationalization incentive because of the potential demand in them. Because of currency fluctuations firms may also choose to distribute their operations across many countries including emerging ones to reduce the risk of devaluation in one country.

The Shah of Iran Mohammad Reza Pahlavi was born in the Sadabad Palace complex in northern Tehran on 26 October 1919. His father's name was Reza Pahlavi, the first Shah of the Pahlavi dynasty, of whom he was the eldest son. His mother was the second wife of Reza Pahlavi.

The economy, with a rapidly expanding population, has experienced a marked decline in investment, low labor productivity, a widening trade gap, a fast accumulation of debt and, above all, a sharp decline in the standard of living. What are the determinants of economic performance?

The U.S government has been trying to influence the Iranian economy by altering its interaction with the international community (Mingst and Snyder, 2011). The U.S policy against Iran reached its climax in 2005 when Ahmadinejad won

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